Article Summary
The United States imposed a 25% tariff on certain Brazilian goods following a year-long investigation into unfair trade practices affecting American farmers, workers, and technology companies. The tariffs target Brazil's restrictions on ethanol imports, intellectual property violations, deforestation policies, and other trade barriers that U.S. officials say harm American commerce.
- The 25% tariff applies to specific Brazilian goods and concludes a Section 301 investigation initiated in July 2025.
- Key issues include Brazil's 18% tariff on U.S. ethanol and exclusion of American producers from the RenovaBio low-carbon fuel program.
- The investigation examined seven major trade concerns: digital trade, electronic payments, preferential tariffs, anti-corruption, intellectual property, ethanol access, and illegal deforestation.
- The USTR received over 360 written comments and heard testimony from 77 witnesses during the investigation process.
- The U.S. remains open to negotiations with Brazil despite the tariff action, though previous negotiations have not resolved the identified issues.
The United States will impose a 25% tariff on certain goods imported from Brazil, U.S. Trade Representative Jamieson Greer announced today, concluding a year-long investigation into trade practices that officials say harm American farmers, workers and exporters.
The action follows an investigation under Section 301 of the Trade Act of 1974 that examined Brazilian measures related to digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation.
“Whether it is punishing U.S. technology companies for refusing to censor political speech, backsliding on anti-corruption enforcement, or allowing Brazilian farmers to exploit illegally logged land to gain an advantage over American farmers, Brazil’s unfair trading practices have prevented U.S. workers and producers from accessing this important market with over 210 million consumers,” Greer said.
Investigation process
The Office of the U.S. Trade Representative initiated the investigation on July 15, 2025, at President Donald Trump’s direction. The agency held consultations with the Brazilian government on April 15-16, 2026, and convened two public hearings in September 2025 and July 2026.
USTR received more than 360 written comments and heard testimony from 77 witnesses during the proceedings. On June 1, 2026, the trade representative determined that certain Brazilian practices are unreasonable and burden U.S. commerce.
Industry response
The Renewable Fuels Association praised the decision, noting that Brazil maintains an 18% tariff on U.S. ethanol imports and has blocked American ethanol producers from participating in RenovaBio, Brazil’s low-carbon fuel program.
“Over the past several years, Brazil has gone out of its way to block lower-cost U.S. ethanol through a complicated framework of tariffs and marketplace barriers,” said Geoff Cooper, RFA president and CEO. “After Brazil rebuffed numerous attempts by the U.S. to negotiate a return to free and fair ethanol trade between our two nations, our leaders were left with no choice but to establish reciprocal treatment.”
The National Corn Growers Association also supported the tariffs. Jed Bower, an Ohio farmer and NCGA president, said the organization testified before USTR and filed comments about Brazil’s discriminatory trade practices.
“We are pleased to see that the Trump administration has done its due diligence by investigating Brazil’s conduct and has acted on behalf of the nation’s corn growers,” Bower said.
Next steps
Greer said the U.S. remains open to negotiations with Brazil despite the tariff action. The trade representative noted that extensive negotiations over the past year have not resolved the issues identified in the investigation.
The Federal Register Notice detailing the final action is now available through USTR’s website.
